- Statute
- Civil Code
- Article
- Art. 2209
- Topic
- Actual or Compensatory Damages
- Status
- In force, as amended
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE XVIII DAMAGES
- Chapter
- CHAPTER 2 Actual or Compensatory Damages
- Formerly
- Art. 1108 of the old Civil Code
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
If the obligation consists in the payment of a sum of money, and the debtor incurs in delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of the interest agreed upon, and in the absence of stipulation, the legal interest, which is six per cent per annum. (1108)
Intellegal Wiki · In plain terms
When a debtor is late in paying a sum of money, the damages owed for the delay — absent any contrary agreement — are simply the interest that was stipulated, or, if none was agreed, the legal interest, which this article fixes at six percent per year.
An editorially maintained plain-language explanation of this provision — not legal advice.
Current: the 6% legal interest stated here is presently accurate (BSP Circular 799 / Nacar v. Gallery Frames, 2013); between 1983 and mid-2013 the applicable rate was 12%.
Note on current application: the legal interest rate in the Philippines is 6% per annum (Bangko Sentral ng Pilipinas Circular No. 799), as established in Nacar v. Gallery Frames (G.R. No. 189871, August 13, 2013).
Cases applying this article
- Land Bank of the Philippines v. Alfredo Ong
- Rosalina Ricafuente v. Oriental Construction
- Francisco G. Chan v. Bank of the Philippine Islands
- Philippine Commercial v. William Golangco Construction Corporation
- Philippine National Bank v. Lilibeth S. Chan
- Ibm Philippines v. Prime Systems Plus
- Spouses Bayani H. Andal v. Philippine National Bank
- Bonrostro v. Luna
Other Supreme Court decisions also apply this article.
Related provisions in this Chapter
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Research aid — not legal advice. Verify the current text against the Official Gazette. Provisions may have been amended or repealed. Using this page creates no attorney-client relationship. For legal advice, consult a Philippine lawyer.